Investor Demand Drives Frenzy of Bond Issuances to Finance M&A Activity and Private Equity Deals
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Demand for corporate bonds has grown fervent as investors hunt for attractive yields before policymakers pull rates lower, encouraging companies to raise capital.
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At least $276 billion of M&A activity is expected to tap the US investment-grade market for financing this year.
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Strong demand is allowing companies like AbbVie and Bristol Myers to sell new bonds at yields similar to their existing debt.
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Junk bonds are also seeing financings reemerge for private equity deals after months of low activity.
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Banks are increasingly interested in less risky private equity purchases requiring relatively low debt levels.